Property is in joint name (Brothers).We have taken a home loan where we both are the borrowers of the loan. We have let out the said property. pls clarify : 1. Can we both avail the tax benefit in our individual IT returns for Loan and interest amount.
2. How should we show the rental income. i.e. in whose returns the income should we consider. Can this be considered only in one person return i.e is in my return as I am am recieving the rental income. Is there any split required??
3. Presently EMI is being paid from my bank account.
05 May 2014
you are joint owner then you can show rent 50%-50% as income and claim intt. on loan also 50%-50%. but you are mention above that one paying the all installment. for that you both also pay 50-50% installments. due to one cannot calim the intt amount if he are paying installments of loan. for that one borther can issue ch.of 50% of installment amount to another brother.
CAclubindia
